ACCA Applied Knowledge · Business and Technology · Social and demographic factors
Zentra Ltd, a clothing company, plans to open stores in a new country. Local custom treats certain colours and styles as inappropriate for religious festivals, and many shoppers prefer to buy from local family-run shops. Which response best shows Zentra adapting to the social and cultural environment?
Zentra should adjust its product range and promotion to local customs and build community relationships. This recognises that religious practices and shopping preferences shape demand and acceptance. Standardising everything, raising prices regardless of norms, or waiting for culture to change fails to address the cultural environment.
- AAdjust product ranges and promotion to local customs and build relationships with the communityCorrect
- BUse identical products and messages in every market to save costs
- CRaise prices to signal quality regardless of local norms
- DDelay entry until local customs change to match its home market
Explanation
Adapting products, promotion and relationships to local customs recognises cultural differences and reduces the risk of offence and rejection. Standardising everything ignores the cultural issues described, while price rises and waiting do not address them.
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